DEMAND FOR PURE UN-INTERRUPTTED,

CLEAN, GREEN POWER BOOSTS.

Consolidation & Steady growth expected in 2025-26.

Over the past three decades, Softdisk has closely monitored the Indian power electronics sector, observing its transformation from a fledgling market into a thriving ecosystem. In its early days, the uninterruptible power supply (UPS) segment emerged as a cornerstoneproviding critical stability to the nascent computing industry. Even today`s leading UPS manufacturers were just getting started when Softdisk first began its tracking efforts.

With the Government of India`s ATMANIRBHAR BHARAT campaign gathering steam, and global manufacturers relocating production from China to India in response to US tariff pressures and shifting geopolitics, the Indian power electronics market is poised to exceed 8,728 crore by March 2026.

This milestone represents a robust year-on-year growth rate of 7.81 %, up from 7.63% in 2024–25.

Softdisk`s model even suggests the sector could breach 8 % growth next year.

Should ongoing Free Trade Agreement (FTA) negotiations with various countries conclude by late September or at the latest by November, annual revenue could approach the 9,000 crore mark by March 2026.

As cost-focused enterprises compete alongside those chasing top-line expansion, privately held firms are projected to derive much of the private-sector growth. Meanwhile, small and medium enterprises (SMEs) are likely to secure major central- government UPS contracts, and several ambitious startups may well achieve unicorn status - an encouraging sign for margin driven players.

The banking industry`s emphasis on lowest-bid procurement, however, raises concerns about post-warranty service quality. In discussions with bank and government agency procurement teams, we found a direct link between low purchase price and inadequate two-year service performance. Suppliers operating on razor-thin margins often struggle to fulfil service commitments, especially when orders are bundled with large system purchases. Intense price competition among UPS majors exacerbates these challenges for smaller manufacturers.

We`re also witnessing consolidation across the UPS segment, driven in part by the rise of solar-enabled UPS units and solar power conditioning units (SPCUs). Smaller firms with specialized expertise are joining forces with larger players that bring broader distribution networks and deeper resources, unlocking new market opportunities and fostering infrastructure expansion.

Amid global economic headwinds and geopolitical tensions including the ongoing India–Pakistan standoff - reaching the 8,751 crore threshold would be a notable achievement. Our projection of 8,722.23 crore (±2 %) covers sales, service, and maintenance of UPS and related power-electronic devices (including home UPS units and SPCUs, but excluding cooling systems), with all figures inclusive of GST. It`s encouraging that multinational companies are increasingly targeting India for expansion, underpinned by steady infrastructure development.

As new facilities come online, demand for dependable power backup will climb. We expect rising sales of three-phase and modular, upgradable UPS architectures, while legacy line-interactive models may see declining share. This trend paves the way for extended-backup UPS solutions - particularly those up to 3 kVA to capture market mindshare. Meanwhile, lithium-ion battery supported UPS systems are generating significant industry buzz, thanks to their longer lifespan and reduced footprint.

Softdisk`s 2025 report draws on interviews with 252 companies across multiple verticals and surveys of over 6,530 decision-makers. All 241 participating firms employ more than 200 staff and maintain pan-India footprints. Our findings reveal that single- phase UPS units up to 10 kVA account for roughly 18 % of total demand, three-phase solutions represent about 62%, and modular UPS offerings comprise close to 15 %. The balance comes from industrial UPS systems, services, and ancillary equipment.

In summary, India`s UPS and power-electronics market stands at a pivotal juncture. Bolstered by government self-reliance initiatives, shifting global supply chains, and ongoing technological innovation, the sector is on track for sustained double-digit expansion. Companies that align with these trends, whether through strategic partnerships, product diversification, or service excellence, will be best positioned to thrive in the years ahead.

Regional Growth Overview

NORTH

Last year, the Northern market recorded a growth of 5%, and this year, it is projected to rise further by 6%. While uninterrupted power supply remains an issue, the overall availability of power has improved considerably over the past five years. There is no significant increase anticipated in government procurement in this region, a trend

already becoming evident. Growth will be primarily driven by the IT, ITES, and BPO sectors, followed closely by demand from Small and Medium Businesses (SMBs), particularly in Uttar Pradesh, Rajasthan, Bihar, and Jharkhand. Overall, the North is expected to contribute around 24% to 26% of the national revenue, estimated to cross 2250 crore by March 2026.

SOUTH

By March 2026, the Southern region comprising Karnataka, Tamil Nadu, Telangana, and Kerala is forecasted to witness robust growth of 25% to 27%, contributing approximately 2350 crore to the total industry revenue. Andhra Pradesh is poised to perform particularly well. The corporate sector will be the key driver of this growth, supported by the IT/ITES and BPO industries. Additionally, the education sector is expected to emerge as a significant revenue contributor.

EAST

Sales of power electronic equipment in the Eastern region are projected to generate about 1400 crore in revenue by March 2025, with a large portion of this driven by government contracts, as several planned projects are expected to be implemented. By March 2026, the East is anticipated to contribute roughly 15% to 17% of the total industry revenue, amounting to over 1400 crore.

WEST

The Western region is projected to account for 33% to 35% of the industry`s total revenue by March 2025, with estimated earnings of approximately 3100 crore out of the expected 7722 crore-plus national total. The SME sector will be the largest contributor in this region, comprising 31% of its revenue. Significant input is also expected from Gujarat, alongside corporate spending in IT/ITES, BPOs, IT services, and industrial process automation. Moreover, the SMB and SOHO segments are set to play a vital role in Madhya Pradesh`s contribution.

Vertical wise Bifurcation:

It is projected that in the financial year 2025-26, the banking, insurance, and finance sector will contribute around 6%, which is approximately 523.69 crore INR, to the industry revenue. The Government sector is expected to be another major contributor, with a projected contribution of nearly 1658.36 crores (directly and through System Integrators), accounting for nearly 19% of the total industry revenue.

The IT-ITES & BPO sector is expected to make the largest contribution, netting revenue of approximately 1221.91 crore, which is a share of nearly 14% in the overall industry revenue. Corporate buying is expected to grow at a rate of approximately 6%, generating revenue of above 523.69 crore. The low purchase rate is primarily due to modular UPS, which can be upgraded and avoid fresh new purchases.

Another major contributor this year will be High-end UPS Systems for industrial plant operations & automation, that can use regenerative load as an input source will be more popular. They will generate 16% of the revenue, which is around 1396 crore.

The trend indicates that those selling higher kVA ratings will be the ones to watch out for as they may clinch the CNC deals. Companies selling to government concerns will be at a benefit. Research and educational institutions will attract non-modular UPSs to cater to their needs, and this sector will contribute nearly 698.26 crore. The hospitality sector will have a low share of the pie.

Small UPS systems with large backups will be in demand as more and more corporates encourage a work-from-home culture. We expect the total revenues to be nearly 8722.23 crore by March 2026.

Softdisk is proud to announce that the SMB & SOHO segment will contribute nearly 1483.80 crores approx indicating that our effort to educate the masses over the past three decades have finally started paying dividends.

Dr. SAI KRISHNAN

Editor in Chief, SOFTDISK